Adding LLC or entities after purchase

[Yia Her]

Hi BP community 

I would like to know if anyone has bought properties under individual names and then adding LLC or entity name afterwards and sell it under LLC. I have been buying homes under individual names solely because of conventional financing through traditional banks since they don't lend to entities. I have been saving money this way but have experience more tax upfront when going to re-sell of property afterwards. From you experience, is this something that can be done and should there be any concerns about chain of titles or other unforeseen hurdles that can come with doing this. I'm actually going to accept an offer on one of my flips that has been structure this way and want to make sure I don't make a big mistake by adding my LLC in the process of selling.

Thanks  

[Jessica Zolotorofe]

@Jack Middleton there is another thread currently active that actually has a few people who noted that their loans were, in fact called, and I have seen it happen twice now. A lender can also choose not to accelerate but to charge significant fees, penalties, and default interest. Some courts have actually deemed it fraud to knowingly violate your loan documents while also knowingly transfering to an owner that specifically would have been prohibited from obtaining the the financing on its own. I mean, think about it... It's an intentional breaking of your obligations that were clear conditions of your loan terms, so that you can have your cake and eat it too. It's really unethical in addition to the potential legal consequences. Not worth the risk as far as I'm concerned, but up to you.